HARARE - Zimbabwe’s mines ministry has notified the U-K-based African Consolidated Resources Plc it will be cancelling its mining license by January 25 next year but the company has hit back saying it is not going anywhere, especially when the authorities are in contempt of court.

State media reports said the ministry had cancelled ACR’s license together with four others held by Zimbabwean companies.

However, ACR chief executive Andrew Cranswick told Voice of America’s Sandra Nyaira that the mining ministry was ‘shooting itself in the foot’ by writing a notification to cancel a license they all along had argued did not exist.

The mines ministry went to the courts to appeal against a September High Court ruling upholding ACR’s claims to the alluvial rich and controversial Marange diamond fields saying the company had never held any claims to the diamond fields.

The government initially seized ACR’s mining claims in October 2006 by following apparent power struggles in Zanu-PF. According to sources, ACR had brought in the powerful former army boss and husband to vice President Joice Mujuru, General Solomon Mujuru, as a minority shareholder in the company in their bid to smooth their way into the controversial mining fields.

At this point in time, soon after the Tsholotsho debacle that saw Jonathan Moyo leaving Zanu PF, the Mujuru camp had an upper hand in Zanu PF. But tables later turned and the Emmerson Mnangagwa camp was back in favour with President Robert Mugabe that pressure was applied to stop ACR from exploiting the diamond fields.

Once again, things have changed in Zanu PF and the Mujuru camp, smarting from recent electoral victories, is once again in control and ACR was hoping its fortunes would change. Apparently Mines Minister Obert Mpofu is not in the Mujuru camp and has vowed not to abide by the court ruling allowing ACR to mine for diamonds in Marange.

Mujuru and Mnangagwa have long fought over business interests, including the Zimbabwe Mining and Smelting Company. The rivalry between the two stemmed from a deal in which Mujuru bought a 27% stake in Zimasco and Mnagwagwa, then a powerful minister sought to thwart the deal.

Said Cranswick: “They have issued another revocation order but by issuing an intention to revoke, they have acknowledged that our claims were valid all along, which means they are fully liable for everything they have done and the South African companies mining there are in contempt of court and everyone is in contempt of court. So it’s actually brilliant that they have done that – they think they are being clever but they actually are being stupid.

This notice totally invalidates their appeal because their appeal is all about  appealing against a ruling that said we had claims, they had denied we had claims and now they are admitting we have had claims by trying to revoke them so it’s perfectly wonderful they have shot themselves in the foot.”

ACR took over the mining claims in Marange after diamond giant De Beers did not renew its license after holding them for 10 years. De Beers has never really spoken out about the time it held the claims – whether it discovered any diamonds or not. The 10 years they held the claims remains hazy.

ACR’s lawyer Jonathan Samkange says he has written to Mpofu and the country’s mining authorities to sort out the mess they have created since they are in contempt of court.

“We will be taking them to court very soon if they do not address this issue,” said Samkange. He said his clients are the rightful owners of the Marange claims and should be allowed to mine without any hindrance.

Companies partnering with the state-owned Zimbabwe Mining Development Corporation, Mbada Mining, a joint venture between ZMDC and Grandwell Holdings Ltd., owned by South Africa’s New Reclamation Group Ltd., are the only ones now allowed to mine in the rich fields.

By Zimjournalist